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Tuesday, August 24, 2010

Debenture

Debenture
An unsecured debt backed only by the company, not by any collateral. Although there are no pledges of specific assets, debenture holders are still considered creditors if bankruptcy occurs. Debentures are usually used by governments and large companies. They can be a great tool to raise funds and still leave specific assets free to be used for financing in the future.

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